Europaudvalget 2006-07
Det Europæiske Råd 20/10-06 Bilag 1
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COMMISSION OF THE EUROPEAN COMMUNITIES
Brussels,
COM(2006) XXX
COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN COUNCIL
External energy relations – from principles to action
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COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN COUNCIL
Informal European Council, Lahti, 20 October 2006
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The European Council of March 2006
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endorsed the Commission Green Paper's proposed
objectives for an energy policy for Europe - long-term sustainability, security of energy
supply and economic competitiveness, in line with the Lisbon strategy for growth and jobs.
The June 2006 European Council
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subsequently adopted a set of recommendations proposed
jointly by the Commission and the High Representative/Secretary General of the Council.
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(1)
Coherence
is central to achieving these objectives. Coherence between the internal
and external aspects of energy policy, and between energy policy and other policies
that affect it, such as external relations, trade, development, research and environment.
A coherent approach is key to ensuring that external energy policy provides guarantees
in terms of security of supply, while at the same time ensuring projection of the
objective of sustainability at international level. To ensure coherence, major and
urgent decisions are needed.
(a)
A major potential strength of the Union lies in the realisation of its
internal
energy market.
It reinforces economic competitiveness, increases diversity,
improves efficiency, fosters investment and innovation and contributes to the
security of supply. Member States should promote the principles of the internal
energy market in bilateral and multilateral fora, enhancing the Union's
coherence and weight externally on energy issues. The pull of the EU internal
market will also be strengthened if interconnection is improved and
competition rules are fully respected.
Major investments are needed to create the necessary interconnections inside
and outside the Community in order to ensure the diversification of routes and
sources of external energy supplies. The EU should help to create the
environment for private capital flows and offer political and financial support
to economically feasible projects, as appropriate.
Energy efficiency should be pursued as the most effective policy that
contributes to all three energy policy objectives, including the reduction of
import dependence. There are significant opportunities for the EU to lead
common international action to reduce the growth in worldwide energy
demand, improve energy efficiency, combat climate change and encourage
greater sustainability. This is just one area where the EU's lead in cutting-edge
environmental and energy technologies makes it an attractive international
partner.
The EU and its Member States should promote, both internally and externally,
the acceleration to a low carbon economy, including emissions trading. This
will address the issues of climate change and sustainability, as well as climate
security. Early action can support the development and use in the EU and in
third countries of renewable energies (wind, solar, biomass, hydro, geothermal)
and clean hydrocarbons, including coal, bringing benefits in terms of
leadership in developing international markets. Nuclear energy is seen by those
who follow this path as an element in energy security and a low carbon
economy.
(b)
(c)
(d)
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Document 7775/1/06 REV 1, Brussels European Council 23/24 March 2006, Presidency Conclusions.
Document 10633/1/06 REV 1, Brussels European Council 15/16 June 2006, Presidency Conclusions.
Document 9971/06.
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(2)
The Union should use all its weight in current and
future bilateral negotiations and
agreements,
offering balanced, market-based solutions, first of all with its traditional
suppliers, but also with other main producing and consuming countries. The EC
should be a key driver in the design of international agreements, including the
extension of the EC energy regulatory framework to neighbours (the Energy
Community), the development of the Energy Charter Treaty, the post-Kyoto regime, a
framework agreement on energy efficiency, the extension of the emission trading
scheme to global partners, the promotion of research and the use of renewable energy
sources. The role of the EC in international organisations and fora needs to be further
developed. Member States and the Commission should coordinate their positions in
order to speak with an effective, common voice.
EU-Russia energy cooperation
is crucial in ensuring energy security on the European
continent. Russia is already the origin of around 25% of oil and gas consumed in the
EU. The growing demand for energy, in particular gas, points to even higher volumes
of energy imports from Russia. The foreseen negotiations on a new comprehensive
framework agreement within the post-Partnership and Cooperation Agreement (PCA)
offer an opportunity to agree on the objectives and principles of energy cooperation in
a balanced and mutually binding manner. This would not only have an impact on the
conditions for EU-Russia trade and investment in the energy sector, but would also
extend across the economy, thus supporting the industrial diversification and
technological development that Russia seeks. It would also bring benefits to transit
and producer countries in Eastern Europe, the southern Caucasus and Central Asia.
Such an agreement with Russia, confirming both market economy principles and the
relevant principles of the Energy Charter Treaty, could also remove many of the
current obstacles to Russia’s eventual ratification of the Energy Charter Treaty.
With the current levels of investment in production, transport and distribution of
energy products, concerns have been expressed that Russia may not be able
adequately to satisfy the growing demand on both its export and domestic markets.
There should, therefore, be a strong joint effort to improve the energy efficiency of
the Russian economy. For this to become possible, framework conditions regulating
and fostering energy trade and cross investments between the EU and Russia would
be required. Linked to this, the EU should develop its cooperation with Russia in
implementing Kyoto commitments, to foster technical innovation and improve the
efficiency of the energy sector.
The EU and Russia should see mutual long term benefits from a new energy
partnership, which would seek a balance between expectations and interests of both
sides. The equation is the following:
(a)
Russia seeks ways to secure energy demand presented by the EU market. The
EU needs Russian resources for its energy security. There is a clear
interdependence.
Russia wants a stronger presence in the EU internal energy market, ensured
long term gas supply contracts, the integration of electricity grids and free trade
for electricity and nuclear materials, as well as the acquisition and control of
downstream EU energy assets (gas and electricity) and EU investments and
technology for the development of the Russian energy resources.
(3)
(b)
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(c)
The EU wants non-discriminatory and fair treatment from Russia in their
energy relationship, in terms of supply from Russia and in terms of access to
the Russian market for EU investors; a level playing field in terms of market
conditions, investment and acquisitions in the upstream and downstream
Russian energy infrastructure and resources; third party access to pipelines
within Russia, including those for transit of energy products from the Caspian
region and Central Asia; respect for competition rules as well as high levels of
environmental security and safety.
In its proposal for negotiating directives for a new framework agreement with
Russia, the Commission has suggested how our energy relationship with Russia
could be enhanced. Closer ties with Russia should seek to eliminate remaining
barriers to trade and investment, promote regulatory convergence and facilitate the
sharing of technology, thus widening and deepening our energy relationship. Mutual
benefits for the long term could be anchored through creating a level playing field,
predictability and reciprocity in terms of:
(a)
(b)
(c)
Upstream and downstream, domestic and foreign investment.
Market opening, and fair and non-discriminatory access to transport networks,
including for purposes of transit of energy products.
Convergence of energy policies, legislation and regulations regarding the
functioning of markets, including trade rules, as well as safety and security
issues.
Compliance with the high standards of EU regulations concerning the safety,
security and environmental aspects, in particular for the purpose of electricity
trade, as well as respect for competition rules.
Joint implementation of energy efficiency and savings, renewables and
research measures.
(d)
(e)
It is essential that Member States have a common understanding on the proposed
approach on the principles for a future energy partnership with Russia, to be considered
in the framework of the post-PCA agreement. The Union should use all opportunities to
convince Russia of the mutual interest in such an exercise.
(4)
EU energy cooperation with
other third countries
remains a top priority, independent
of EU-Russia negotiations. It serves the EU’s and the transit countries' security of
supply, help the reforms in partner countries and facilitates the producer countries’
access to EU markets. Cooperation is also pursued with important energy consuming
countries. Diversity of type of energy, of country of origin, and of country of transit
are essential to ensure the EU's access to clean and secure energy.
The EU is surrounded by almost 80% of the world’s hydrocarbon resources. There
are important energy producers in the Mediterranean, Black Sea, Caspian, Middle
East and the Gulf regions as well as in the North (Norway), with which the EU is
building strengthened cooperation. The aim is to create a wide network of countries
around the EU, acting on the basis of shared rules or principles derived from the
internal market.
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There are different tools that could be used to pursue this goal. There are the existing
and future bilateral agreements with energy producer and transit countries, such as
the PCAs, the Memorandum of Understanding on Energy Cooperation with Ukraine
and the Association Agreements with Mediterranean countries. In addition, there are
the European Neighbourhood Policy Action Plans; the foreseen memoranda of
understanding with Algeria, Azerbaijan and Kazakhstan; Euromed energy
cooperation; the Baku initiative; and the EC - Norway energy dialogue. Energy
relations have also been reinforced with other important energy producers such as
OPEC and countries in Latin America and Africa, which are increasing their
hydrocarbon output and have the potential to go even further. As for energy
consuming countries, cooperation is also being developed with the United States,
India and China. An efficient monitoring and implementation of these initiatives is
essential, and needs to be fully supported by the EU’s trade, development,
environment and competition policies.
The Energy Community Treaty entered into force on 1 July 2006 and extends the
relevant EU energy
acquis
to the Western Balkan countries. The implementation of
the Treaty will improve energy security, create a regional energy market and
encourage vital investments. The inclusion of Norway and Ukraine, which have
already formally applied to join the Energy Community Treaty, should be considered
at the earliest possible moment. Further reflection needs to be carried out concerning
other possible membership applications. In the Black Sea and Caspian Sea Region,
the 'Baku initiative' energy policy dialogue can be expected to galvanise the countries
of the region to tackle shared challenges in cooperation with the EU and help boost
new supplies from central Asia to the EU.
Turkey is becoming a crucial energy hub for supplies from the producer regions and
is thus of strategic importance for the EU's energy security. The enlargement process
with Turkey could contribute to promoting the early adoption and implementation of
the EU’s energy acquis by Turkey, while Turkey's early accession to the Energy
Community Treaty could also speed up this process. Co-operation on pipeline
projects such as the Nabucco project and further projects from the Caspian basin
should be realised in the most effective manner. A rapid alignment of Turkey with
EU energy standards and policies would be highly beneficial for realising Turkey’s
great potential as a major energy hub.
The EU’s financial cooperation instruments should be mobilised in full to promote
the restructuring and development of the partner countries’ energy sectors, regional
cooperation, infrastructure interconnections, new pipelines, energy efficiency and
renewable energy sources for our mutual benefit. The recent case of a joint proposal
from the EU, the European Investment Bank and the European Bank for
Reconstruction and Development for the financing of hydrocarbon infrastructure
projects in the framework of the EU-Ukraine Memorandum of Understanding on
energy cooperation has demonstrated that powerful synergies can be created when all
EU instruments are put at the service of a strategic EU objective in a coordinated
manner. The recently adopted Global Energy Efficiency and Renewable Energy
Fund will help to find additional financial resources.
It is important rapidly to build up relations with strategically important neighbours of
the Union. Member States need to support the ongoing bilateral and regional energy
cooperation partnerships with the main EU energy partners, including the gradual
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extension of the principles of the internal energy market through the European
Neighbourhood Policy and the efficient use of all financial instruments which the EU,
the European Investment Bank, the European Bank for Reconstruction and
Development and other international financial institutions can put at the disposal of the
EU's energy security.
(5)
To ensure efficient follow-up and coherence in pursuing the above mentioned
initiatives and processes, it will be crucial for EU partners to be constantly informed
and aware of developments, and ready to share essential information with each other
in case of an external energy crisis. For facilitating such exchange, the Commission,
the Council Presidency and the General Secretariat of the Council are preparing the
establishment of a
network of energy correspondents
to assist the EU’s early
response and reactions in case of energy security threats. The objective of such a
network would be to prepare the ground for actions and decisions in case of an energy
security crisis by collecting, processing and distributing reliable information relevant
to the security of energy supplies to the EU. The network would also draw preliminary
analysis and assessments in view of providing an early warning when the objectives of
energy security may not be achieved.
The network should be composed of energy experts from Member States, the General
Secretariat of the Council and the Commission. It should operate through a specific
communication system and meet on an ad hoc basis.
In order to facilitate the implementation of a common and coherent external energy
security policy and constitute an important instrument by which the EU could have at
its disposal an early warning system to promote its preparedness for energy crises, the
Member States should agree to the establishment and implementation of the network of
energy correspondents.
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